RBI proposes banks to disclose detailed information on capital, risks under Basel Pillar 3
Business 19 May, 2026

RBI proposes banks to disclose detailed information on capital, risks under Basel Pillar 3

Business To Business, Mumbai, 19th May, 2026:   ratio (NSFR). In a draft circular on Pillar 3 disclosure requirements, banks will also have to explain significant changes in these metrics from previous quarters and key drivers behind such movements.
Reserve Bank of India on Tuesday proposed a revised disclosure framework for banks under the Basel III norms, seeking more granular disclosures on capital adequacy, leverage, liquidity and risk exposure to improve transparency and market discipline.
Under the proposed framework, banks would be required to make quarterly disclosures in a standardised format covering key prudential indicators such as:

  • Common Equity Tier 1 (CET 1) capital,
  • Total capital,
  • Risk-weighted assets (RWAs),
  • Leverage ratio,
  • Liquidity Coverage Ratio (LCR), and
  • Net Stable Funding Ratio (NSFR).
In its draft circular on Pillar 3 disclosure requirements, the RBI also proposed that lenders explain significant quarter-on-quarter changes in these metrics and disclose the major factors driving such movements.
The move is aimed at strengthening transparency in the banking sector and aligning Indian disclosure practices more closely with international regulatory standards.

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